A SIP (Systematic Investment Plan) Calculator is a financial tool that helps estimate the future value of regular monthly investments in mutual funds. It’s designed to assist investors in planning and visualizing wealth accumulation over time.

How It Works:

The calculator requires:

• Monthly investment amount

• Expected annual return rate

• Investment duration (in years or months)

It uses the compound interest formula to calculate the estimated returns and total value at the end of the period.

Formula Used:

$$FV = P \times \frac{(1 + r)^n - 1}{r} \times (1 + r)$$

FV=P×r(1+r)n−1​×(1+r)

Where:

• FV = Future Value

• P = Monthly investment

• r = Monthly interest rate (annual rate ÷ 12)

• n = Total number of months

Benefits:

• Helps set and track financial goals (e.g., retirement, education, house).

• Encourages disciplined investing.

• Useful for comparing different investment scenarios.